(a) Only licensees and individuals who have practice privileges under § 35122 of this Chapter may issue a report on financial statements of any person, firm, organization, or governmental unit, or offer to render or render any attest or compilation service, as defined herein. This restriction does not prohibit any act of a public official or public employee in the performance of that person’s duties as such; or prohibit the performance by any non-licensee

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of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services, and the preparation of financial statements without the issuance of reports thereon. Non-licensees may prepare financial statements and issue non-attest transmittals or information thereon which do not purport to be in compliance with the Statements on Standards for Accounting and Review Services (SSARS).

(b) Licensees and individuals who have practice privileges under § 35122 of this Chapter performing attest or compilation services must provide those services in accordance with applicable professional standards.

(c) No person not holding a valid license in accordance with § 35106, or a practice privilege pursuant to § 35122 of this Chapter, shall use or assume the title ‘certified public accountant’, or the abbreviation ‘CPA’, or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such person is a certified public accountant.

(d) No firm shall provide attest services or assume or use the title
‘certified public accountants’, or the abbreviation ‘CPAs’, or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that such firm is a CPA firm unless the firm holds a valid permit issued under § 35107 of this Chapter; and ownership of the firm is in accord with this Chapter and rules promulgated by the Board.

(e) [Repealed.]

(f) No person or firm not holding a valid license or permit issued under
§§ 35106 or 35107 of this Chapter, or a practice privilege pursuant to § 35122 of this Chapter, shall assume or use the title ‘certified accountant,’
‘chartered accountant,’ ‘enrolled accountant,’ ‘licensed accountant,’
‘registered accountant,’ ‘accredited accountant,’ ‘public accountant,’ or any other title or designation likely to be confused with the title ‘certified public accountant,’ or use any of the abbreviations ‘CA,’ ‘LA,’ ‘RA,’ ‘AA,’
‘PA,’ or similar abbreviation likely to be confused with the abbreviation
‘CPA.’ The title ‘Enrolled Agent’ or ‘EA’ may only be used by individuals so designated by the Internal Revenue Service.

(g) Non-licensees, non-firms use of titles and language.

(1) Non-licensees may not use language in any statement relating to the affairs of a person or entity which is conventionally used by licensees in reports on financial statements or on any attest service as

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defined herein. In this regard, the Board shall issue safe harbor language that non-licensees may use in connection with such financial information.

(2) No person or firm not holding a valid license or Firm Permit to Practice issued under § 35106 or § 35107 of this Chapter shall assume or use any title or designation that includes the words >accountant,=
>auditor,= or >accounting,= in connection with any other language (including the language of a report) that implies that such person or firm holds such a license or Firm Permit to Practice, or has special competence as an accountant or auditor provided, however, that this Subsection does not prohibit any officer, partner, member, manager or employee of any firm or organization from affixing that person=s own signature to any statement in reference to the financial affairs of such firm or organization with any wording designating the position, title, or office that the person holds therein nor prohibit any act of a public official or employee in the performance of the person=s duties as such.

(h) No person holding a license or firm holding a permit under this Chapter shall use a professional or firm name or designation that is misleading about the legal form of the firm, or about the persons who are partners, officers, members, managers, or shareholders of the firm, or about any other matter; provided, however, that the names of one (1) or more former partners, members, managers, or shareholders may be included in the name of a firm, or its successor. A common brand name, including common initials, used by a CPA firm in its name, is not misleading if said firm is a Network Firm as defined in the AICPA Code of Professional Conduct (Code) in effect on December 15, 2014 and, when offering or rendering services that require independence under AICPA standards, said firm must comply with the Code’s applicable standards on independence.

(i) None of the foregoing provisions of this § 35113 shall have any application to a person or firm holding a certification, designation, degree, or license granted in a foreign country entitling the holder thereof to engage in the practice of public accountancy or its equivalent in such country, whose activities in Guam are limited to the provision of professional services to persons or firms who are residents of, governments of, or business entities of the country in which the person holds such entitlement, who performs no attest or compilation services as defined in this Chapter and who issues no reports as defined in this Chapter with respect to the information of any other persons, firms, or governmental units in Guam, and who does not use in

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Guam any title or designation other than the one under which the person practices in such country, followed by a translation of such title or designation into the English language, if it is in a different language, and by the name of such country.

(j) No holder of a license issued under § 35106 of this Chapter shall perform attest services through any business form that does not hold a valid permit issued under § 35107 of this Chapter.

(k) No individual licensee shall issue a report in standard form upon a compilation of financial information through any form of business that does not hold a valid permit issued under § 35107 of this Chapter unless the report discloses the name of the business through which the individual is issuing the report, and the individual:

(1) signs the compilation report identifying the individual as a
CPA,

(2) meets the competency requirement provided in applicable standards, and

(3) undergoes no less frequently than once every three years, a peer review conducted in such manner as the Board shall by rule specify, and such review shall include verification that such individual has met the competency requirements set out in professional standards for such services.

(l) Nothing herein shall prohibit a practicing attorney or firm of attorneys from preparing or presenting records or documents customarily prepared by an attorney or firm of attorneys in connection with the attorney=s professional work in the practice of law.

(m) Commissions and referral fees.

(1) A licensee shall not, for a commission, recommend or refer to a client any product or service, or for a commission, recommend or refer any product or service to be supplied by a client, or receive a commission, when the licensee also performs for that client,

(A) an audit or review of a financial statement; or

(B) a compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee=s compilation report does not disclose a lack of independence; or

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(C) an examination of prospective financial information.

This prohibition applies during the period in which the licensee is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in such listed services.

(2) A licensee who is not prohibited by this Section from performing services for, or receiving a commission and who is paid or expects to be paid, a commission shall disclose that fact to any person or entity to whom the licensee recommends, or refers, a product or service to which the commission relates.

(3) Any licensee who accepts a referral fee for recommending or referring any service of a licensee to any person or entity, or who pays a referral fee to obtain a client shall disclose such acceptance or payment to the client.

(n) Contingent fees.

(1) A licensee shall not:

(A) perform for a contingent fee any professional services for, or receive such a fee from a client for whom the licensee or the licensee=s firm performs,

(i) an audit or review of a financial statement; or

(ii) a compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee=s compilation report does not disclose a lack of independence; or

(iii) an examination of prospective financial information; or

(B) Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.

(2) The prohibition in (1) above applies during the period in which the licensee is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in any such listed services.

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(3) Except as stated in the next sentence, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. Solely for purposes of this Section, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies. A licensee=s fees may vary depending, for example, on the complexity of services rendered.

(o) Notwithstanding anything to the contrary in this Section, it shall not be a violation of this Section for a firm that does not hold a valid permit under § 35107 of this Chapter, and that does not have an office in Guam, to provide its professional services in Guam so long as it complies with the requirements of § 35107(a)(2) or (3) of this Chapter, whichever is applicable.

SOURCE: Subsection (b) amended by P.L. 28-118:22 (Apr 26, 2006). Subsection (a)
amended by P.L. 33-193:25 (Dec. 15, 2016). Subsection (b) amended by P.L. 33-
193:26 (Dec. 15, 2016). Subsection (c) amended by P.L. 33-193:27 (Dec. 15, 2016). Subsection (d) amended by P.L. 33-193:28 (Dec. 15, 2016). Subsection (h) amended by P.L. 33-193:29 (Dec. 15, 2016). Subsection (o) added by P.L. 33-193:30 (Dec. 15,
2016). Subitem (g)(1) amended by P.L. 33-193:39 (Dec. 15, 2016). Subsection (i)
amended by P.L. 33-193:40 (Dec. 15, 2016). Subsection (e) repealed by P.l. 33-
193:43 (Dec. 15, 2016. Subection (f) amended by P.L. 33-193:44 (Dec. 15, 2016).